I assumed TermMax was mainly about fixed rates.
TermMax uses Fixed-Rate Tokens (FT), X Tokens (XT), and Gearing Tokens (GT) in its fixed-rate borrowing and lending mechanism. FT represents the amount redeemable at maturity, XT represents the associated interest obligation, and GT is used as collateral in borrowing flows. Range orders use pricing curves to distribute liquidity across interest-rate levels. FT can also be traded before maturity.
That made me look at it differently.
Time to maturity is part of FT pricing: the purchase price, maturity price, and remaining maturity days determine the implied rate.
What I’m uncertain about is how these pricing curves and secondary FT trading behave when liquidity is uneven or market rates shift quickly.
want to watch this in practice
#TermMax @TermMax
TermMax uses Fixed-Rate Tokens (FT), X Tokens (XT), and Gearing Tokens (GT) in its fixed-rate borrowing and lending mechanism. FT represents the amount redeemable at maturity, XT represents the associated interest obligation, and GT is used as collateral in borrowing flows. Range orders use pricing curves to distribute liquidity across interest-rate levels. FT can also be traded before maturity.
That made me look at it differently.
Time to maturity is part of FT pricing: the purchase price, maturity price, and remaining maturity days determine the implied rate.
What I’m uncertain about is how these pricing curves and secondary FT trading behave when liquidity is uneven or market rates shift quickly.
want to watch this in practice
#TermMax @TermMax